Uber, Lyft Rally After California Appeals Court Delays Business Model Change

Uber Technologies (UBER) and Lyft (LYFT) can keep their business models in place in California while challenging a judge's order to comply with a state labor law, a state appeals court ruled, Bloomberg reports.

The appeals process could take more than a year, it adds. The delay buys time the companies as they campaign for a ballot measure set for a statewide vote in November that would free app-based transportation and delivery companies from requirements of the law known as Assembly Bill 5, Bloomberg points out.

Proposition 22 exempts Uber and Lyft from paying for full benefits that employees currently get under California law while requiring them to pay 120% of minimum wage. Shares of Uber are up 7% to $31.53 in afternoon trading while Lyft is up 7% to $30.08.

 

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.